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From Kirsten Bischoff, Opalesque New York:

The CFTC announced yesterday that a settlement had been reached with Amaranth Advisors whereby the firm would pay a $7.5m fine, down from the CFTC’s original target of $20m, “for attempting to manipulate the price of natural gas futures contracts on the New York Mercantile Exchange (NYMEX) on February 24 and April 26, 2006” (Source).

The settlement brings to an end the CFTC’s manipulation charges against the firm but does not end the investigation of former head natural gas trader Brian Hunter’s actions. In email correspondence with Bloomberg Michael Kim, of law firm Kobre & Kim LLP and a representative for Mr. Hunter told the news outlet “Mr. Hunter has not agreed to the agencies’ unreasonable demands because he should not be penalized for something he did not do.”

Three years since the Connecticut-based firm went from controlling more than half the US natural gas market to complete collapse (to the tune of $6.6bn) it is still mired in multiple legal battles. According to a July letter to investors the firm is still dealing with:

- A decision in Amaranth’s favor regarding a convertible bond position (representing half the fair value of the remaining illiquid non-side-pocketed investments) whereby the issuer breached the indenture. However, certain aspects of the......................

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